Gnosis has launched Corona Information Markets, a decentralized prediction market for the coronavirus pandemic.
According to their announcement, Corona Information Markets has received financing from Gnosis in order to launch the company’s coronavirus prediction market.
Corona Information Markets is a non-profit tool that aggregates reliable information on the COVID-19 pandemic.
— Corona Information Markets (@corona_markets) April 21, 2020
This non-profit initiative is part of their thrust to support quality and reliable information about the pandemic, the company said.
Gnosis’ announcement said:
“Gnosis is proud to fund and support the public non-profit initiative CORONA INFORMATION MARKETS, a decentralized prediction markets platform, with the aim of uncovering key information about the novel coronavirus.”
Corona Information Markets received US$50,000 [AU$78,700] “in subsidy to create 50 information markets covering different aspects of the pandemic.”
Encouraging fact vs false information
There are several key questions running in people’s minds today about the virus. And many times, people rely on a little bit of research in order to find out the answers to these queries.
However, with a huge body of information easily accessible to people, it can be hard to distinguish which among the information is factual or fake.
Gnosis’ new prediction market works around the framework that seeks to do two things: encourage expert opinion and disincentivize false information.
How does the prediction market work?
Open markets in the platform are questions that have “no clear answers” yet.
Few examples of these unanswered questions are:
- “When will the peak in the number of cases happen?”
- “How many infections will there be in the U.S. by June 1?”
- “Can people who recovered from COVID-19 contract the virus once again?”
In determining the outcome for such markets, the decentralized Oracle by Gnosis will collect every pertinent information about the market’s question to come up with a definitive answer. The decentralized oracle sources its information only from trusted data providers and experts.
Users who want to make the predictions, or bet on some answers for the questions in each open market, will deposit their stake using USD Coin (USDC). USDC is a stablecoin pegged to the U.S. dollar.
Where is this prediction market accessible?
Interested users who are outside the U.S. can join such prediction markets.
They are inaccessible in the U.S. due to regulatory restrictions. Prediction markets are deemed “online gambling” by the U.S., hence, they are outlawed.
Other crypto and blockchain initiatives surrounding the pandemic
There are other cryptocurrency and blockchain initiatives built around the global sentiment and news reports surrounding the on-going pandemic.
Coronacoin, for example, is a cryptocurrency token that has its value influenced by the number of deaths and infections that COVID-19 has tallied globally. It has received much criticism, however.
According to an article from Forbes:
“Coronacoin is a macabre gimmick, designed to make its developers a quick but – not to serve as a long-term store of value.”
Meanwhile, there are other blockchain efforts that serve a straightforward function. One initiative can help people track where most COVID-19 infections are, as well as other communicable diseases. This gives people the ability to make more informed decisions, especially when it comes to traveling.